A STUDY ON PORTFOLIO ANALYSIS AND STRATEGIC PERSPECTIVE OF KINGFISHER BEER Group No.2 Praveen Kumar
(035)
Gagan Kasliwal
(078)
Sneha Keshan
(084)
Ashmita Goyal
(089)
Abhijeet Akash
(092)
Jitendra Ku Kumar Gupta
(116)
EXECUTIVE SUMARY The present report is a unique effort to highlight the exuberance and achievements of the United Breweries Ltd., a inimitable company, and the report, in a nutshell, has tried to give glimpse on the company company position, position, the industry analysis, analysis, comparativ comparative e status, portfolio portfolio of its products products Its core competency, competency, value chain chain etc. The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its initial lessons lessons in manufacturi manufacturing ng beer beer from South South Indian based British British breweries. breweries. United United Brewerie Breweriess made its initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels or "Hogsheads". At the age of 22, Vittal Mallya Mallya was elected as the company's first Indian director in 1947. After a year, he replaced replaced R G N Price as the chairman of the company. Kingfisher, Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. With currently into business of Spirits (United Spirits Ltd.), Wine, Beer (United (United breweries Ltd.), Engineering (UB Engineering Limited), Fertilizers (Mangalore Chemicals and Fertilizers) company has made its mark and presence in each sector it is in. United Breweries Limited (UBL) - has assumed undisputed undisputed market leadership leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality. As an economic force, India is believed to hold the potential to grow faster than any other BRIC country over the next thirty to fifty years. The sub-continent’s Beer market has been equally dynamic, growing by almost 90% since the turn of the Century. Exceptionally high growth was generated in the northern states of Punjab, Haryana and Rajasthan which took full advantage of reduced taxes and improvements in the distribution policy. In contrast to Russia, consumers are displaying a distinct preference for Strong Beer which has gained market share steadily in recent years and now accounts for almost 70% of total volume. Kingfisher Strong replaced Kingfisher Premium as the leading Beer and the Kingfisher brand overall now holds a commanding position.
MARKETING MYOPIA It is Narrow-minded approach to a marketing situation where only short-range goals are considered considered or where the marketing focuses on only one aspect out of many possible marketing attributes. Because of its shortsightedness, marketing myopia is an inefficient marketing approach. According to Theodore Levitt company should have a radar view rather than tunnel view to its business and when we talk of UBL it is not at all myopic because it has foot falls not just in breweries industry by products like distilleries, beer beer , wines, but has also entered into into airlines, footwear, footwear, fashion, apparels, sports. Company’s brand KINGFISHER is not new to any one and has showed its presence in every sector it is in. Company has also gone for backward integration and has various collaborations and JV’s with suppliers.
COST COMPONENT One of the most and well well reckoned step that UBL has taken in order to reduce reduce the rising cost and decreasing prodution (Appendix) of raw material barley over the year. Higher prices and short supply supply of key raw materials like malt, hops and barley can reduce the profit margin and affect Any price increase in this two commodities have a direct bearing bearing in reducing the overall operating operating margin. Due to price increase of barley by over 33% and increase in bottling cost, during FY2008 the net profit margin fell by 26%. In states like Uttar Pradesh, Rajasthan and Madhya Pradesh which, account for 80.34% of barley barley production in India, the area under cultivation is shifting to other crops like sugarcane. As can be seen in the adjoining diagram, the barley production has declined by over 60% from 3135 KMT to 1220KMT from 1975 to 2005. To hedge the risk on rising raw material prices, UBL has entered into long term arrangements for sourcing of the vital inputs. In addition it has extended its own contract farming initiatives in the state of Punjab. The 51% Equity stake in Maltex Malsters Limited, a manufacturer of malt, is also an initiative for vertical integration.
INDUSTRY The Indian beer industry has been witnessing steady growth of 10 - 17% per year over the last ten years. The rate of growth has increased in recent years, with volumes passing 170m cases during the 20082009 financial year. With the average age of the population on the decrease and income levels on the increase, the popularity of beer in the country continues to rise. In modern modern times, beer beer began to to be exported exported to India India in the early early days of the British British Empire — the early early 1700s. The The first modern modern brewery brewery in India was set set up in Kasauli, Kasauli, in the Himalaya Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer . The Indian beer industry has witnessed a big change during the last five years. The industry was previously dominated by competition between the Vijay Mallya-controlled Mallya-controlled United Breweries Group and the Manu Chabbria-controlled Shaw Wallace. The scenario changed, changed, however, with the entry of SABMiller in India. The international international beer giant started by acquiring small breweries in the south but then completely changed the landscape with
the acquisition of Shaw Wallace’s beer portfolio for a reported US$264m in 2003. This gave SABMiller ownership of strong brands like Haywards 5000, along with its existing brands. After the acquisition, SABMiller focused on spreading its footprint across India, including opening new breweries in states where Shaw Wallace did not have a presence. In 2008, beer prices saw steep hikes in key beer consuming states. Consumers’ reactions to the price hikes saw many cut back on consumption, which adversely affected sales growth. Excessive regulation and further extensions of government intervention, in the areas of distribution and pricing, is affecting the growth and profitability of the industry as well as restricting government revenues. In addition, restrictions on advertising and licensing licensing of retail outlets continue to present challenges to the Industry. The Indian beer industry is plagued with a myriad of taxes & levies that vary from state to state. These along with price regulation, inadequate market infrastructure and restrictions in interstate movement of beer, pose a great challenge for the industry. Unlike most developed developed countries where beer is less regulated and available freely, high level of regulation and higher end consumer price hampers beer sales in India. Uniform tax regime for beer in all states will be a boon for the industry. If implemented, it will help the beer industry by rationalizing end consumer prices in all states, as is in the case of other consumer goods. In addition to economic contribution, a uniform tax structure will also create increased agro linkages that are beneficial to a country like India. It is important to realize that the beer sector can contribute immensely to the agricultural sector, as beer is an agro-based product. Also marginal barley farmers, particularly stand to benefit from the growth of the beer sector.
BOSTON CONSULTANCY GROUP MATRIX (BCG MATRIX) It is a widely used portfolio management method for evaluating the performance of business units. There are four quadrants in a BCG matrix: question marks, stars, cash cows and dogs. On the X axis, market growth is measured, which indicates the level of market attractiveness On the Y axis, market share is measured, that serves as a measure of the company's strength in the market
STAR Stars are high-growth, high-share businesses. Very often, they need heavy investment investment for financing their rapid growth. Eventually, their growth slows down and they turn into cash cows.
TAJMAHAL BEER:- Taj Mahal Premium Lager beer is prepared with finest malt made at
United Brewery own malt house using premium quality barley. It has a distinct aroma and unique taste. The demand of this beer is mainly in abroad (australia, france, usa) as it is premium priced and have bitter taste which is not liked much in india though it is served in some premier hotels in india. The demand outside outside is very good and it accounts for good market share in the exported beer in india.
KINGFISHER STRONG:- spectacular growth of 36% is seen in strong beer (against a
market growth of 16%) was witnessed. Kingfisher Strong has now achieved the number one position in the strong beer segment.
CASH COW Cash cows are low-growth and high-share businesses. Such established and successful business lines require less investment to maintain their market share. They generate a lot of surplus that a company can use to pay its bills, or invest in other businesses.
KINGFISHER LAGER BEER:- it has witnessed a market growth of 13% in comparison to
the lager beer industry growth of 9.4%.in the lager beer segment, UBL is the market leader in all the 10 largest states of the Country. UBL commands a market share of around 40% with 67% of the market share in the lager beer segment.
QUESTION MARK Question marks are low-share business units, in a high-growth market. They require a lot of cash, for maintaining the market share. Any business has to think between building a question mark into stars or whether they have to be phased out
LONDON PILSNER:- it has witnessed a market growth of more than 20% and targeting a
market share of 15% . (Indiantelevision.com)
KINGFISHER DRAUGHT:- this beer has less water in comparison to other beer type. it
has good market growth as it is proving success in its 2 nd year still the market share is less. (thaiindian.com)
KINGFISHER BLUE:- this is launched around 8-9 months before to tap those customer
who wants less alcoholic beer in comparison to strong beer but more than mild. It has around 6% alcohol content. Since it has launched sometime before hence the market share occupied is less as strong beer and lager beer segment is increasing very fast however market growth rate main up.
DOG Dogs are low-growth and low-share businesses. They may generate enough surplus to maintain themselves, but do not hold out the promise to be a large source of cash.
UB ICE BEER:- this beer is launched for trendy people in 330ml can.It was different from
the traditional lager beer as it was made using a unique refrigeration process which involves the formation of ice crystals which were filtered out giving the brew a crisp, clear and strong taste. It did’nt got good response as it has very low market growth instead people are drinking more the lager and strong beer.
KALYANI BLACK LABLE:- one of the oldest brand launched in 1969. It has low market
share as it is only popular in east india and it assumed to be economical . the market growth for this brand is not good as people are shifting towards other beers such as London pilsner which is also economical brand.
ANSOFF MA M ATRIX To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible productmarket combinations.
MARKET PENETRATION The firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share.
KINGFISHER LAGER PREMIUM:- it has witnessed a market growth of 13% in comparison
to the lager beer industry growth of 9.4%.in the lager beer segment, UBL is doing market penetration in all the places by promoting the beer in every state. UBL commands a market share of around 40% with 67% of the market share in the lager beer segment.
KINGFISHER STRONG:- The company is investing much in this product and also the
customers are increasing due to the more alcoholic content and it has registered spectacular growth of 36% in strong beer (against a market growth of 16%) was witnessed.
MARKET DEVELOPMENT The firm seeks growth by targeting its existing products to new market segments.
TAJMAHAL :- This beer is made mostly for export purpose and contain less alcoholic content
though the taste is unique due to its bitterness. The demand of this beer is mainly in abroad (australia, france, usa) as it is premium priced and have bitter taste which is not liked much in india though it is served in some premier hotels in india.
LONDON PILSNER:- this beer mainly aims lower income group as it is economical beer and this
beer contain less alcoholic content hence catering to all together different segment.
PRODUCT DEVELOPMENT The firms develops new products targeted to its existing market segments.
KINGFISHER DRAUGHT:- this beer beer contain less less amount of of water and comes in 500ml 500ml
can. Hence creating a new product in existing market
KINGFISHER BLUE:- this is launched around 8-9 months before to tap those customer
who wants less alcoholic beer in comparison to strong beer but more than mild. It has around 6% alcohol content. It is also done to create a new new product.
KINGFISHER BOHEMIA:- Kingfisher- the brand that has been been synonymous with providing
a "good time" to consumers have launched their own brand of wines in India "Kingfisher Bohemia". It is launched in 2008 to get the wider reach in the alcoholic drink market.
KINGFISHER ULTRA:- This will be launched within some months. It is a new drink having
sweetness in it.
DIVERSIFICATION This resulted in the company entering new markets where it had no presence before
KINGFISHER LEISURE WEAR:- kingfisher is diversified in the leisurewear segment extending itself
in the path of providing providing good time to customers.
KINGFISHER AIRLINES:- kingfisher airlines had becomes a very well known company in itself.this
is a full-fledged carrier carrier providing comfort to its fliers.
KINGFISHER SWIMSUIT CALENDAR:CALENDAR:- kingfisher also launch its annual swimsuit calendar which is
the second costliest calendar in the world.
SPORTS:- kingfisher also diversified diversified in various sports Current such as in Formula 1, Rugby and
Football.
PORTER’S FIVE FORCE MODEL This model is developed by Michael Porter, this model analyzes the nature and intensity of competition in an industry through five forces (rivalry, customers, supplier, new entrants, and substitutes). These five forces are explained as below:BARGAINING POWER OF SUPPLIERS:- With increasing cost of raw material and decreasing cost of barley
suppliers bargaining power was high but with backward integration by acquiring Maltex Malsters Ltd. And shifting their production of beer on malt company has achieved a hold on its raw material and considerable reduced the supplier strenth and dependency. Company has aslo collaborated with Government of pujab and haryana for supply of iits raw material.
RIVALRY:- Rivalry is the means through which competitors fight for position by using tactics such as
price, competi competition tion,, advertisem advertisement ent battles, battles, and new new product product introductio introduction, n, to lower lower the profits profits of competitors in the industry. A CAGR of 11% is expected for beer in the next next 5 years many MNcs are eyeing eyeing the Indian market. Currently the major rivalry for kingfisher premium is Budweiser, Carlsberg, Foster and Tiger and for kingfisher kingfisher strong strong it’s Hayward Hayward 2000, Hayward Hayward 5000, Palone. Palone. SABMiller’s SABMiller’s who who came to India India by acquiring small breweries and made its hold as Best-selling strong beer brand but still kingfisher being Largest-sel Largest-selling ling strong strong beer brand (29%market (29%market share) is currently currently being supplied supplied in 55 country. There are also some small small local players players that are in the market market but does not provide provide much threat to kingfishe kingfisher. r. THREAT OF NEW ENTRANCE:- Beer industry is in Growth phase with 11% CAGR, so it is attractive for the
new players. But strong brands like kingfisher and haywards which already have have their brand recall and extensive advertisement new entrants are expected to struggle to expand their consumer base as they try to penetrate the beer market in India. Foreign brewers have been eyeing the Indian market for some years now as India is widely acknowledged to be the last untapped big growth market Several
international brewers have currently built brand associations and are marketing their brands aggressively through various point-of-sale promotions throughout their distribution networks. But with strong players in the market the new entrant will face problems of a) Economies of scale For example benefit associated with bulk purchases and sales b) Cost of entry For example investment in technology c) Distribution channel For example ease of access for competitors d) Government Legislations introduction of new laws might weaken companies position e) Differentiation For example certain brands that cannot be copied f)
Supplier power Possibility of forward integration by supplier
BARGAINING POWER OF CUSTOMERS:- It is the extent to which customers are successful in forcing
prices down, or securing high quality or more service at the same price. Customers tend to be powerful when the quantities they purchase form form a large portion of the seller's total sales. Buyer Buyer do not understand the quality of the beverages and as there are not many players in the market the customer has less command over price. THREAT OF SUBSTITUTE:- India is predominantly a spirits market and beer is a minority preference for
those who consume beverage alcohol. So substitute is biggest threat as preference preference for beer among beverage drinker is less but the low penetration in beer consumption in comparison to international levels offers the expectation of substantial and sustainable growth in demand for beer in years to come, particularly given the youthful age of India’s population.
MICHAEL PORTER’S VALUE CHAIN
PRIMARY ACTIVITIES INBOUND LOGISTICS:- Beer is brewed in either the company’s owned or non-owned Breweries, with
certain Breweries set up for certain functions. This also reduces the cost and there is less treat of the suppliers. The company also has its franchise for the production of the beer. The best example is of the Taloja plant situated in Mumbai. Mumbai. The experience of Kingfisher brand since 1915 adds to the experience and efficiency of the firm. The is thing is also very clear from its balance sheet as the EBITDA of United Breweries is 2675.2 Millions which is 35.61% more than previous year (2007-2008). The owned plant also has reduced the switching cost of the suppliers of Kingfisher. Higher prices and short supply of key raw materials materials like malt, malt, hops and barley can reduce the the profit margin margin and affect affect operations. operations. Barley Barley and glass bottles constitute 12% and 40% of the total operating expense expense of UBL. Any price increase in this two commodity commodity has a direct bearing bearing in reducing reducing the overall overall operating operating margin. margin. Due to price increase increase of barley barley by over 33% and increase increase in bottlin bottling g cost, during during FY2008 the the net profit profit margin fell by 26%.[10] 26%.[10] In states like Uttar Pradesh, Rajasthan and Madhya Pradesh which, account for 80.34% of barley production in India, the area under cultivation is shifting to other crops like sugarcane. The barley production has declined by over 60% from 3135 KMT to 1220 KMT from 1975 to 2005. To hedge the risk on rising raw material prices, UBL has entered into long term arrangements for sourcing of the vital inputs. In addition it has extended its own contract farming initiatives in the state of Punjab. The 51% Equity stake in Maltex Malsters Limited, a manufacturer of malt, is also an initiative initiative for vertical integration and excellence excellence in inbound logistics. OPERATIONS:- Quality and hygiene are the key elements of the United Breweries'
manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Bangalore sets standards for all its breweries. Quality Management Systems laid out along the lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw materials to the end product. Also, besides controlling the production process, the CSL analyses the Company's beer taken off market shelves all over the Country, the competition's beers and beers across the world. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters. By these standards, United Breweries' beers don't just equal, but even surpass, several Dutch and American beers. OUTBOUND LOGISTICS:- No internal distribution/Use third party to distribute product. The
channel is very strong. As we know alcohol is a state subject in India and hence each state has it own taxation, pricing and distribution policies. No No inter state movement of alcohol is allowed. Also since beer is not delinked from other spirits it is heavily taxed at over 42%. Since tax on alcohol contributes to over 17% of state revenues, the government is hesitant to change the tax treatment. Any further increase in taxation on beer would shift consumer consumer preference towards other alcohol products thereby reducing the demand for beer. In states of Delhi, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala government controls the distribution of alcohol. Whereas in states of Rajasthan, Bihar and Himachal Pradesh auction based distribution distribution is used. Reforms in the distribution system in these states would increase increase the competitiveness in in the market and lead to increased sales as was demonstrated by the 400% increase in beer sales in the states of Punjab Punjab and Haryana Haryana after the distribu distribution tion reforms reforms in July 2008. 2008. It has also
lowered the barriers to entry present in the industry and thus brings a more competitive environment in the industry. But the quality and its channel is so strong that it doesn’t find any threat from the new entrance. The corporate strategy of kingfisher to demonstrate the complete plant to any of the distributer reaching the plant has improved the brand loyalty and increase the switching cost for the users. It has a network of 23 distilleries across the country to meet the requirements at the regional level giving it an unparalleled distribution reach within India. MARKETING/SALES:- Lot of focus on quality marketing as well trained sales force to sell the
product in India is carried by the Brand. Vijay Mallya, the flamboyant CEO of United Breweries the company that owns the Kingfisher brand - is one of the most flamboyant flamboyant CEOs in Asia. Vijay Mallya believes in leading his brand from the front by leveraging his personality. Vijay Mallya is referred to as India's Richard Branson. A great part of the personality of the Kingfisher brand is based on Mallya's personality. He is credited with having single handedly changed the image of his beer brand from a commodity to a lifestyle brand. Hence he carry so strong brand marketing that it is said that at every second 4 bottles of Kingfisher bottles are sold. Sales force is trained and highly experienced.
SUPPORT ACTIVITIES PROCUREMENT:- Choose high quality ingredients to ensure higher quality end result. Heavy
reliance on this process. t he complete plant in 2000 TECHNOLOGICAL:- In technology advancement they have automated the by the Allen Bradley system. This has considerably reduced the cost and increase the rate of production. The cycle time is reduced to half of the previous statistics. INFRASTRUCTURE:- Very strong management with a good understanding for competition and
zeal for staying on top of industry. Its infrastructure is good as it is backed by the parent brand of UB Groups.
PORTERS GENERIC STRATEGY Companies can achieve competitive advantages essentially by differentiating their products and services from those of competitors and through low costs. Firms can target their products by a broad target, thereby covering most of the marketplace, or they can focus on a narrow target in the market. According to Porter, there are three generic strategies that a company can undertake to attain competitive advantage: cost leadership, differentiation, and focus. Kingfisher is following a differentiated strategy by introducing a product range in all the categories like premium beer, beer, mild beer and strong beer cater to all the segments in in the market. They also differentiated their product through marketing their product by associating their brand with major events, like sponsored West Indies team in world cup 1996 by showing a spirit of team, IPL, east Bengal football club, Mumbai marathon, Bangalore open. With the company target to youth segment it also
used the focus strategy by associating with events that youth likes such as Formula one race where it showed and given the brand a sense of excitement and a sense of thrill. Various sports club of kingfishers are sponsor by youth brands like Reebok, Nike etc. They have also introduced products specific to region like, kalyani black in eastern india, UB exports is famous in Karnataka in order to focus on their customers.
GE MA M ATRIX STRONG-HIGH UNITED SPIRITS LIMITED:- With considering the fact that the Spirits market is growing at a rate of 20% and United spirits have also shown a remarkable growth of 20% by volume. This is a strong area for the company and company should invest and grow in it UNITED BEVERAGE LIMITED:- Largest in India with a market share of 50%. Beer Market is also showing a growth pace of 10-12% and the industry is projected to grow between 15% to 18% in the next two years. The regulatory framework across key markets in India is undergoing a progressive change. change. The liberalization of policy is expected to result in an increase in retail outlets as well as rationalization of pricing.
KINGFISHER AIRLINES :- Kingfisher Kingfisher Airlines Airlines is No. 1 airlin airline e in India India with with a market market share share of 27.1% 27.1% (December 2008). Nearest competitor airline is at 16.8% (Jet & Jetlite together have have 24.4%).
The CAGR of market growth from FY 2004 to FY 2008 has been 31%. Whilst market growth YoY dropped from FY 2007 to FY 2008, Indian airlines industry has shown a growth of 18% per annum, the reduction has been primarily on account of unmanageable ATF price increase leading to increase in fares.
Reduction in ATF prices resulting in reduced fares (implemented end Dec 08 and Jan 09) will bring back customers to air travel
MEDIUM-MEDIUM Engineering is a engineerin engineering g and construction construction company company catering catering to UB ENGINEERING LIMITED:- UEL UB Engineering cross section of industries industries in power, steel, steel, cement and petrochemical sectors With a recessionary condition in the market there is a medium growth seen while company has shown triple digit growth in profit. MANGALORE CHEMICALS & FERTILIZERS LIMITED:- Only Fertilizer plant in Karnataka, with a dealer network of 2530 in South India and a well established brand “MANGALA”. With fertilizer industry showing a medium growth of 10-12% the company is also also on growth path.
Fertilizers, 15% Engine e rin g , 3%
Be e r , 17% 17%
Airlines , 6%
Spir Spirits its , 59% 59%
SWOT ANALYSIS STRENGTHS
Strongest Worldwide Distribution System Huge Finances backing from UB Group Oldest & Largest Player In India Worldwide known Brand
WEAKNESS
High Concentration on Strong Beer Beer Market . Too much diversified.
OPPORTUNITIES
Beer consumption is increasing Per capita beer beer consumption in India - 0.5 litres which which is very low Brand Extension Benefits
Changing lifestyles of middle class Increase in disposable income
THREATS
High Taxes & Regulations Prohibition on Advertising Indian Culture is a Major Hindrance Negative perceptions about alcoholic beverages widely prevalent Many International Player Entering In India This is a ‘regulated’ industry
COMPETITIVE ADVANTAGE
MANAGEMENT TEAM Professional Managed Seasoned Professionals with Significant Industry Experience SEGMENT MARKET PRESENCE
Least Vulnerable to Policy Volatility due to Large Spread
LOCAL SOURCING
OPTIMAL, AS ALMOST COMPLETELY LOCALLY SOURCED
MANUFACTURING TECHNOLOGY
Largest Manufacturing Space Maximum Capital Utilization BRANDING Strongest Brand Significant Up gradation Value Chain Ownership Initiatives Planned for Integrating into Retailing
CORE COMPETENCY Strong brand image with continuous innovation and technology along with good marketing and distribution channel are the core strength of the company
FUTURE FUT URE GR GROW OWTH TH In India the future of beer industry is very much optimistic because: 1. India has predominantl predominantly y a warm/ warm/hot hot climate climate 2. The beer-drinkers beer-drinkers in the country are much younger younger than the average beer-drinker elsewhere in the world. This makes them more likely to carry the brand with them for a lifetime. 3. Increasing exposure exposure to beer and wine drinking, drinking, mainly due to media and consumer consumer mobility. All these factors combined make the scenario very promising for beer industry and are 'in sync' with their strategy for India.
LEARNINGS
Acquisition, Strategic alliance, joint ventures are important strategies to sustain in the market, if there are large number of small players, threat of foreign company entry. Diversification and innovation are the key drivers for tapping the market. Vertical integration helps to sustain in the market if production of raw material decreases and cost increases. The concept of umbrella branding branding is used consistently consistently and successfully by kingfisher e.g. Kingfisher beer, Kingfisher fly. The industry analysis by five forces is an excellent tool one should use for understanding the market.
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